Cleveland Ship bids for Northrop Grumman shipbuilding business

Cleveland Ship LLC has submitted a bid to acquire the entire shipbuilding division of Northrop Grumman, including the Newport News shipyard in Virginia, one of the most strategically important naval shipbuilding facilities in the United States.

According to company president and chief executive Ed Bartlett, Cleveland Ship believed it was the only bidder seeking to acquire the whole operation rather than selected assets. Financial details were not disclosed, although industry estimates at the time suggested the business could be valued at up to USD 4.6 billion (approximately EUR 3.2 billion at the prevailing exchange rate).

The proposed acquisition would include shipyards at Newport News, Virginia; Pascagoula, Mississippi; and Avondale, Louisiana, as well as support businesses AMSEC LLC and Continental Maritime, a shiprepair facility in San Diego. Under the proposal, the combined business would operate as Cleveland Shipbuilding Group.

Northrop Grumman had announced earlier that it was exploring strategic alternatives for its shipbuilding activities, including a sale or spin-off, and had confirmed plans to close its Avondale yard.

“It’s a multi-billion-dollar offer that, as far as we know, is completely consistent with Northrop Grumman’s expectations,” Bartlett said.

The company stated that it intended to keep all existing shipyards open and maintain employment levels. Ron Ault, president of the Metal Trades Department of the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), said the proposal was attracting interest because of its commitment to preserving jobs and facilities.

At one time, Newport News employed nearly 20,000 people and was the only US shipyard building aircraft carriers, as well as one of only two facilities constructing nuclear submarines for the US Navy.